Dubai vs Los Angeles: How much real estate can you buy with $1m?
In the world of real estate, $1 million opens the doors to an array of property types. However, offerings can vary drastically from city to city based on several factors such as area, developers, amenities, and more. Two global hubs that attract high-net-worth individuals are Dubai and Los Angeles – both offering opulence and investment opportunities yet worlds apart in their real estate offerings.
Dubai’s Real Estate Market
Dubai continues to experience an incline in real estate investment interest, attracting millionaires and billionaires at staggering rates. Areas like Downtown Dubai and Dubai Marina, for instance, offer spacious three-bedroom apartments spanning 2,000 to 2,500 square feet with views of the skyline and several high-end amenities.
Los Angeles’ Real Estate Market
Conversely, Los Angeles offers a drastically different real estate market. Known for its glamour and steep property prices, the offerings for $1 million vary significantly. In popular areas like West Hollywood or Silver Lake, a budget of $1 million can fetch a modest two-bedroom condo ranging from 1,000 to 1,500 square feet, often with shared amenities and city views. In up-and-coming neighborhoods like Highland Park or Leimert Park, this budget might buy a small three-bedroom house, usually around 1,500 square feet.
Property Comparisons
Dubai: The Address Fountain Views 1
- Price: AED3,650,000 ($993,731)
- Location: Downtown Dubai
- Features:
- One bedroom, two bathrooms
- 840 sq. ft.
- Fully furnished
- Burj Khalifa view
- Infinity swimming pool
- Gym
- Spa
- Basketball court
Los Angeles: 818 North Doheny Drive
- Price: $1,149,000 (AED4,220,305)
- Location: West Hollywood
- Features:
- One bedroom, one bathroom
- 1,154 sq. ft.
- $300k remodeling
- High-end appliances
- Napoleon electric fireplace
- Open floor plan
- Walk-in closet
- Large balcony
Dubai: 23 Marina
- Price: AED3,650,000 ($993,731)
- Location: Dubai Marina
- Features:
- Three bedrooms, four bathrooms
- 2,980 sq. ft.
- Maid’s room
- Two parking spaces
- Open-plan living and dining room
- Semi-open plan kitchen
- Wrap-around balcony
- Skyline views
Los Angeles: 6764 North Figueroa Street
- Price: $999,999 (AED3,672,856)
- Location: Los Angeles, 90012
- Features:
- Four bedrooms, two bathrooms
- Landscaped backyard
- Two-car garage
- Storage room
- Attic
- Handmade wood barn doors
Market Trends and Investment Insights
According to Arabian Business, the Dubai real estate market offers rental yields of up to 11 percent in some areas, significantly outperforming global property markets in 2024. This increase is attributed to heightened demand and rising property prices in the city, as highlighted in Bayut’s latest research.
In contrast, Los Angeles is experiencing a slowdown in its property sector, influenced by rising national mortgage rates. Data from Norada Real Estate Investments reveals a minor decline in the number of housing transactions year-on-year.
Making the Decision
For those with a budget of $1 million, both markets offer varying property types. Experts suggest making a calculated decision based on personal factors, preferences, investment capabilities, and assessment of long-term goals. Whether one seeks luxury and high returns in Dubai or the iconic lifestyle of Los Angeles, understanding the distinct offerings of each market is crucial for making an informed investment decision.
Reference: Arabian Business
